European Central Bank President Christine Lagarde said the central bank is unlikely to lower interest rates at its July meeting, citing inflation that remains stubborn across the eurozone. Her remarks suggest policymakers are still cautious about easing monetary policy too quickly.

The ECB has been weighing signs of slowing growth against price pressures that have not faded evenly across the currency bloc. Lagarde’s comments indicate the bank wants more evidence that inflation is moving sustainably toward its target before considering another cut.

Markets have been closely watching the ECB for clues on the pace of future policy changes. A hold in July would underline the bank’s preference for restraint while officials assess fresh data on prices, wages and economic activity.

For households and businesses, the message points to borrowing costs staying elevated for longer than some had hoped. The next ECB meeting is now likely to focus on whether incoming data justifies patience rather than a swift shift toward easier policy.